Tapper Corp., an accrual basis calendar year corporation, was organized on January 2, year 1. During year 1, revenue was exclusively from sales proceeds and interest income. The following information pertains to Tapper: Taxable income before charitable contributions for the year ended December 31, year 1 $500,000 Tapper's matching contribution to employee-designated qualified universities made during year 1 10,000 Board of Directors' authorized contribution to a qualified charity (authorized December 1, year 1, made February 1, year 2) 30,000 What is the maximum allowable deduction that Tapper may take as a charitable contribution on its tax return for the year ended December 31, year 1? a.$0 b.$10,000 c.$30,000 d.$40,000

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.